Netto's successful startegies.

Essay by deepikaUniversity, Master'sB, November 2003

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Key points of Netto's successful strategy

§Pricing Strategy

Pricing is a central part of Netto's marketing strategy it underpins its discount philosophy of providing the lowest price for a range of essential products, Netto compete on the basis of lowest price and high quality, their strategy is to be the cheapest but not cheaper. The success of the concept in Denmark and Germany was due to convince shoppers to buy the everyday essentials at lowest price from the shops and then cross the road to do the rest of the shopping in the supermarket.

§Cultural Strategy

Netto being operating in four international markets with its very distinctive characteristics and distinctive black logo against a yellow background, it shows the ability to adapt to any type of culture around the world. Netto has been the distinctive corporate culture characterized by strong patterns of informal vertical and horizontal communication. Netto encourage the shop's employees to share their ideas for new spot or clearing lines.

Netto has introduced a £1000 tax free prize for those employees who give a hint about a new location for a store, this philosophy has reinforced the ability to build team that believe in and contribute to their winning culture and adopt themselves to local customers needs

§Structure strategy

The company operates with a simple structure with just two management levels.

1.Netto's head office team, where the managing director has all the sores responsibilities e.g.: the small head office in UK consists of a buying department, a marketing department, a property management and site acquisition department, finance, a management team which coordinates the activities of districts managers and a central distribution warehouse with capacity to accommodate 150 stores.

2. District and store managers, thinking behind such a flat structure is straightforward and designed to facilitate communication, changes...